Page:United States Statutes at Large Volume 56 Part 1.djvu/817

 56 STAT.] 77TH CONG. , 2D SESS.-CH. 610 -OCT. 16, 1942 amount in excess of what will be adequately covered by the probable earnings available for the payment thereof; "(iv) leaves adequate means for such future financing as may be requisite; "(v) is consistent with adequate maintenance of the property; and "(vi) is consistent with the proper performance by such railroad corporation of service to the public as a common carrier, will not impair its ability to perform such service: Provided, That in making the foregoing specific findings the Commission shall scrutinize the facts independently of the extent of acceptances of such plan and of any lack of opposition thereto: Provided further, That an order of the Commission (or of a Division thereof) under section 20a of the Interstate Commerce Act, made prior to the effective date of this chapter, authorizing the issuance or modification of securities as proposed by a plan of adjustment (other than securities held by or to be issued to, Reconstruction Finance Corporation), shall be effective for the purpose of this subparagraph (2) of the first sentence of section 710, notwithstanding failure to include therein the foregoing specific findings, if such order did include the specific findings that such proposed issuance or modification of securities is compatible with the public interest, is consistent with the proper perform- ance by the railroad corporation of service to the public as a common carrier, and will not impair its ability to perform such service; and "(3) secured assents to such plan of adjustment or such plan of adjustment as modified by, or with approval of, the Commis- sion, by creditors holding more than two-thirds of the aggregate amount of the claims affected by said plan, which two-thirds shall include at least a majority of the aggregate amount of the claims of each affected class, may file in the United States district court in whose territorial juris- diction such railroad corporation has had its principal executive or principal operating office during the preceding six months or a greater period thereof, its petition averring that it is unable to meet its debts, matured or about to mature, and desires to carry out the plan of adjustment. "A copy of the order obtained from the Commission, as above provided, shall be filed with the petition and made a part thereof. "SEC. 711 . Any corporation which has complied with subparagraphs (1), (2), and (3) of the first sentence of section 710, and in which corporation the majority of the capital stock having power to vote for the election of directors is owned directly, or indirectly through an intervening medium by any railroad corporation which has filed a petition hereunder, or any corporation which is a lessor of the peti- tioning corporation and which has complied with the aforesaid sub- paragraphs (1), (2), and (3) of section 710, or any corporation which is liable or obligated, contingently or otherwise, on securities issued by or on which the obligation or liability has been assumed by, the petitioning carrier corporation and which has complied with the aforesaid subparagraphs (1), (2), and (3) of section 710, may file its petition in the same court in which the petition first aforesaid shall have been filed, and such petitions shall be heard and disposed of in a single proceeding. Any corporation liable or obligated, con- tingently or otherwise, upon the securities of a carrier shall, with respect to such securities and any securities issued in lieu thereof and for the purposes of this chapter, be deemed a carrier within the 789 Provisos. Scrutiny of facts. Prior orders con- taining favorable find- ings. Assents by creditors. Filing of order Petitions, Hearing and dislxsal in single procc(ing. Application of Inter- state Commerce Act.

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